The MetaMask platform has seen a significant increase in monthly active users (MAUs), with the number now exceeding 30 million. This surge, nearly doubling from around 19 million in September 2023, is a positive sign of increased activity in non-custodial activities such as decentralized finance (DeFi) and non-fungible token (NFT) minting.
The rise in MetaMask users has caught the attention of the crypto community, with Blockworks reporting on the growing numbers. This trend suggests a renewed momentum in the broader crypto market, particularly within compatible networks like Ethereum. It is worth noting that the increase in MetaMask users aligns with the recovery of Bitcoin and Ethereum prices from late Q3 2023 to the present.
Ethereum, the second-largest cryptocurrency by market cap, is currently trading at around $3,000. Traders and supporters are optimistic about future price gains, driven by ongoing network upgrades such as the upcoming mainnet implementation of Dencun. Additionally, the recovery in DeFi activities is evident from the nearly 2X rise in total value locked (TVL) from $40 billion to over $74 billion as of mid-February 2024, according to DeFiLlama data.
The number of active users in DeFi and NFT sectors is closely tied to crypto prices. Previous peaks in crypto prices led to record highs in MetaMask users and increased DeFi and NFT activities across compatible platforms. As a non-custodial wallet, MetaMask allows users to have direct control over their assets, which can boost market confidence and potentially lead to further price gains.
In addition to user growth, MetaMask has introduced a new Blockaid alert system to protect users from fraud. Initially launched for trials in October, the feature is now available to all extension users engaged in various activities, including DeFi and gaming. MetaMask plans to extend this feature to mobile users in the near future.
Earlier this year, ConsenSys partnered with MetaMask to launch a validator staking feature. This service, aimed at competing with existing providers like Lido Finance, allows users to stake their ETH without the need to own nodes or manage technical complexities. Users can stake a minimum of 32 ETH through Consensys Staking.
Overall, the increase in MetaMask users, coupled with the growth in DeFi activities and the introduction of new security features, indicates a positive outlook for the broader crypto market. With ongoing network enhancements and innovative solutions like ETH staking, the future of DeFi and NFTs appears promising for both users and investors.
